The Securities and Exchange Commission of Pakistan (SECP) has notified amendments to the Companies (Further Issue of Shares) Regulations, 2020 governing listed companies’ issuance of shares with different rights and privileges, positioning the changes as measures to protect minority shareholders and strengthen corporate governance, transparency and price discovery. Key changes include requiring ordinary shares carrying voting rights to receive the same percentage or ratio of dividend per share, setting a minimum of 75% of total voting power for ordinary shares under the “one share, one vote” principle, capping varied voting rights at a maximum of five votes per share, and requiring ordinary shares with varied rights to be issued as listed securities. SECP said the amendments were finalised after consultations with stakeholders including the PSX, CDC, NCCPL, listed companies, consultants, professional associations and law firms.
Securites & Exchange Commission of Pakistan 2025-12-22
Securities and Exchange Commission of Pakistan tightens listed company differential rights share regime with 75% one share one vote floor and 5 vote cap
The Securities and Exchange Commission of Pakistan has amended the Companies (Further Issue of Shares) Regulations, 2020, to enhance minority shareholder protection and corporate governance. Key changes include aligning dividend distribution with voting rights, enforcing a "one share, one vote" principle for at least 75% of voting power, capping varied voting rights at five votes per share, and mandating listed status for shares with varied rights. These amendments were finalized after consultations with stakeholders like the Pakistan Stock Exchange and other industry entities.